- Work permits are either employer-specific or open. Most are employer-specific.
- An LMIA is a labour market test the employer obtains before the worker applies.
- Many permits are LMIA-exempt, including under trade agreements and intra-company transfers.
- Working without authorisation has consequences well beyond the immediate job.
The two kinds of permit
An employer-specific permit authorises work for a named employer, often in a named role and location. Changing employer generally requires a new permit.
An open permit allows work for almost any employer. Open permits are limited to defined situations, spouses of certain workers and students, post-graduation permits, and some others.
Open permits are considerably more valuable to the worker, which is why the categories that produce them matter.
The LMIA route
A Labour Market Impact Assessment is obtained by the employer, not the worker. It is an assessment of whether hiring a foreign worker will have a positive or neutral effect on the Canadian labour market.
The employer generally must advertise the position, demonstrate genuine recruitment efforts, show that no suitable Canadian or permanent resident was available, and meet requirements on wages and working conditions.
It is a process with real cost and lead time for the employer. Once a positive assessment issues, the worker applies for the permit relying on it.
Requirements differ by wage stream and occupation, and there are additional requirements in some sectors.
The exemptions that matter
A significant share of work permits are issued without any LMIA, under the International Mobility Program. The categories used most often are:
- Intra-company transferees. Executives, managers and specialised-knowledge employees moving to a related Canadian entity.
- Free trade agreements. CUSMA and other agreements provide routes for certain professionals, traders and investors.
- Spouses of certain skilled workers and of full-time students.
- Post-graduation work permits for graduates of eligible Canadian institutions.
- Significant benefit and reciprocal employment categories.
These routes are usually faster and place far less burden on the employer, so identifying whether one applies is normally the first analytical step rather than an afterthought.
Work that needs no permit
A limited set of activities can be performed without a permit, including certain business visitor activities, some public speaking, and specified roles.
The business visitor line is frequently misunderstood. Attending meetings and negotiating are generally permissible; entering the Canadian labour market is not. The distinction turns on whether the person is performing work that would otherwise be done by someone in Canada.
Getting it wrong
Working without authorisation, or outside the conditions of a permit, is a serious problem. It can lead to a finding of non-compliance, refusal of future applications, removal, and difficulty obtaining permanent residence.
The commonest inadvertent breaches are starting work before a permit is issued, continuing to work after expiry, and working for an employer other than the one named.
Employers face their own exposure. Employer compliance is inspected, and findings can result in monetary penalties and a period of ineligibility to hire foreign workers.
Maintaining status
A worker who applies to extend before their current permit expires may be able to continue working under maintained status while the application is processed.
This depends on applying before expiry. Applying afterwards puts the worker out of status and requires restoration, which has its own deadline and does not permit work in the interim.
Diarising the expiry date well in advance is the single most useful administrative habit for anyone on a permit.
Common questions
Can I change employers on an employer-specific permit?
Generally not without a new permit. Some circumstances allow starting sooner after applying, but the default is that a change requires authorisation.
Does a work permit lead to permanent residence?
Not automatically, but Canadian work experience contributes significantly to several permanent residence programmes.
Can my spouse work?
Often yes, through an open permit, depending on the skill level of the principal worker’s occupation and the current rules, which have changed.
What happens if my permit expires while I am waiting?
If the extension was applied for before expiry, maintained status may allow continued work. If not, work must stop and restoration may be needed.
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